Member States opt for voluntary extension of working life instead of rigid retirement ages.

Member States Opt for Voluntary Extension of Working Life Instead of Rigid Retirement Ages.

On 19 June, the "Employment, Social Policy, Health and Consumer Affairs Council" (EPSCO) adopted conclusions on supporting older people in realizing their potential in the labour market and in society. The Member States advocate for a voluntary extension of working life rather than rigid retirement ages. Furthermore, they call for greater societal recognition of the contributions made by older people.

Silver Transformation – A New Narrative?

Under the guiding concept of the "silver transformation" and with a focus on more flexible transitions into retirement, a paradigm shift appears to be emerging. While the European debate on demographic ageing has so far primarily concentrated on raising the statutory retirement age, the conclusions call for incentives to encourage employees to voluntarily extend their working lives. Key approaches include continuing education and training as well as occupational health and safety. Innovative measures are needed to help older individuals maintain their physical and mental health, while also developing their skills and motivation for a longer working life. These measures not only support the social and economic participation of older people but also contribute to strengthening Europe’s competitiveness.

Harnessing the Economic Potential of Older People

The Council’s conclusions make clear that extending the active phase of employment cannot simply be achieved by raising the retirement age. Employees leave the labour force for a variety of individual reasons. Work-life balance is also an important issue for older individuals. In the conclusions, the ministers emphasize that in addition to investments in areas such as training and employee health, flexible retirement arrangements are also needed. These should accommodate different individual needs so that older workers can remain in employment longer.

Through these diverse political measures, the efficiency and sustainability of public finances can be improved, labour shortages mitigated, and the EU’s competitiveness enhanced. These efforts also help ensure adequate social protection and promote fairness and solidarity between generations.

More Appreciation Needed

The ministers also call for greater societal recognition of the valuable contributions that older people make to economic, family, and community life. Society must be made aware of this, and age discrimination and negative stereotypes must be countered.

Outlook

As part of the upcoming new European Action Plan on the European Pillar of Social Rights, there will be an examination of how active ageing policies can be effectively promoted and to what extent economic and employment growth can be supported through the silver transformation. In the next Joint Employment Report of the European Semester, measures that specifically encourage older people to remain in active employment longer are to be highlighted.